How to import: why and how to import

How to import: why and how to import

Many countries treat imports as if they were an economic evil, which is not true.

We should always look at international trade with a view of the current of trade and not only by export or import.

For a country, import should be a counterpart of an export, forming the chain of trade. Globally speaking the balance of foreign trade is to be sought among countries. Seeking only exports inhibits international trade and generates protectionism.

An import occurs for three reasons, alone or together:

Need: an import by necessity is when a country or company needs a product or service that can not be found in the domestic market.

Competition: import by competition happens when a product or service in the foreign market is better and cheaper than the same product or similar in the domestic market.

Exchange result: when a country or company imports a product or service in exchange for another product to be exported.

In import by competition, just like in any one purchase, importers have to compare price, term and quality.

Besides these three reasons that justify an import, to import we need to know three basic keys of international trade:a) Routines: the entrepreneur must study and analyze the import routines and procedures, such as documents, pricing, payment methods, buying and selling (INCOTERMS) and steps to follow:

a) Routines: the entrepreneur must study and analyze the import routines and procedures, such as documents, pricing, payment methods, buying and selling (INCOTERMS) and steps to follow.

b) Market: the entrepreneur needs to study and analyze the market he wants to reach, city, country or region, he has to calculate and compare his prices and he has to find potential suppliers.

c) Logistics: the entrepreneur must find the right partners to ensure that their importation is successful, quality and safety, and this includes foreign exchange services, international transport, international transport insurance, customs brokers, consultants and other necessary services.

Knowing and mastering these three key skills reasonably, the entrepreneur will be able to communicate better with his employees, his suppliers and the service providers. What once looked like a “black box” over time will become better known and create the culture of international trade.

How to import. And why are the three knowledge important and complementary?

Because it is not enough just to have the routines, if we do not also have the market and the logistics. The routine will guide us “know how“, but if we do not have the market, the “from whom” and the logistics, “how to receive“, we will hardly be able to apply this knowledge.

Likewise, it is not enough to know the market, the “from whom“, if we do not have the “know how” of the routines and the “how to receive” logistics.

And therefore, to know how to import, it is not enough just to have logistics, the “how to receive“, if we do not know the routines and know the market.

These are the three keys to “how to import“: routines, market and logistics. All the others are due to them or are also common to the domestic markets.